Major US Banks Report Strong Profit Growth: What Does This Mean for Your Trading?

It's one of today's hot topics: the quarterly results of the largest US banks are expected to be strong, driven by robust trading and investment banking activities. JPMorgan Chase, Citigroup, Goldman Sachs, and Morgan Stanley will publish their results starting next week, and analysts are anticipating a significant increase in profits for the second quarter of 2025.

Why does this matter to you as an investor or trader? Because these results often set the tone for the market as a whole. When the financial giants outperform, it sends a signal of confidence regarding the economic health of financial markets. Conversely, disappointing results can increase short-term volatility.

Trading and Investment Banking: Growth Engines

According to preliminary data from Reuters, the rise in market-related revenues is one of the main drivers lifting results. Whether it's equities, currencies, commodities, or derivatives, trading desk volumes have surged, especially in March and June—two months with heightened volatility.

Investment banking is also benefiting from renewed M&A and capital-raising activity, particularly in the tech and energy sectors. This marks a gradual return to risk-taking for companies after several quarters of caution.

And for the Stock Markets?

These announcements come at a key moment. The S&P 500 is at record highs, the Nasdaq is still buoyed by the AI boom, and even financial stocks are starting to look appealing to investors again.

In concrete terms, if the results meet expectations, this could:

Confirm the ongoing bullish trend
Attract new capital to the financial sector
Stimulate rotation between growth and cyclical stocks

But be careful: any miss, especially regarding loan loss provisions, could quickly temper the enthusiasm.

What You Can Take Away as an IVT Member

At IVT, we closely monitor these releases because they often create short-term opportunities on stocks and indices. It’s not just about whether "banks are doing well," but rather about spotting the signals these results are giving on:

market liquidity,
institutional risk appetite,
and ongoing sector rotations.

If you actively trade the CAC40, S&P 500, or banking stocks like Société Générale or BNP Paribas, this news can help you better anticipate intraday or swing moves.

In summary:
The major US banks are expected to report sharply higher earnings thanks to the rebound in market activities. This confirms that the financial sector is healthy—for now. Stay alert, because these results can also spark strong and sudden moves on indices and bank stocks, with great opportunities for active traders.

The IVT Team
July 11, 2025